There was follow through to the upside in the cash SP500 yesterday but it certainly was not remarkable. The focus for the bulls (besides seeing more follow through) must be the strong resistance forming in the 1186 area composed of the medium (blue) and short (red) moving averages as well as the TD Supply line. This is formidable resistance and whether it can be overcome may be the tell on whether the consolidation from early August is over or not.
Bottom Line: Until further evidence develops, or we break 1121.09, I think that the bullish potential over the near term should be respected. My mechanical allocation mix meter is at +50%.
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